The ASX 200 is expected to have a better day on Thursday…
The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia. –
On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower ahead of the public holiday. The benchmark index fell 2.5% to 6,961.6 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to jump
The Australian share market looks set to rebound strongly on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 77 points or 1.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 1%, the S&P 500 is up 1.7%, and the Nasdaq has risen 2.6%.
Tech shares on watch
It could be a good for tech shares including Appen Ltd (ASX: APX) and Block, Inc. (ASX: SQ2) on Thursday after the tech-focused Nasdaq index stormed higher. As the local tech sector tends to follow the lead of the Nasdaq, its 2.6% gain in late trade bodes well for today’s session. The Block share price on the NYSE is up 3.5% currently.
Oil prices rise
Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid day after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 2.1% to US$87.39 a barrel and the Brent crude oil price is up 2.1% to US$90.02 a barrel. The latter hit the US$90 mark for the first time since 2014 amid tight supplies.
Fortescue named as a sell
The Fortescue Metals Group Limited (ASX: FMG) share price could be heading materially lower according to the team at Goldman Sachs. In response to its second quarter update, the broker has reiterated its sell rating and lowly $13.50 price target. The broker notes that its shares are trading at 1.65x net asset value (NAV), which is notably higher than its two largest peers at 0.9x NAV.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough day after the gold price dropped. According to CNBC, the spot gold price is down 1.1% to US$1,831.4 an ounce. Traders were selling gold after the US Federal Reserve indicated that a rate hike is coming in March.
The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd and Block, Inc. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
